Airlines ordered to compensate passengers in 50% of recent air travel complaint rulings, data shows

Newly available data shows Canada's transport regulator ordered airlines to pay passengers compensation or a refund in half the cases resolved over a recent nine-month period. But most details about these decisions are now confidential, a change that concerns critics.

But new rules that keep some details secret could be unconstitutional, legal expert says

Sophia Harris · CBC News · Posted: Aug 05, 2024 4:00 AM EDT | Last Updated: August 6

Transparency concerns raised over public airline compensation data

1 month ago Duration 2:03

Half of all air passenger complaints resolved by the Canadian Transportation Agency over a recent nine-month period resulted in a passenger refund or compensation, according to analysis of newly available CTA data. However, some industry and legal experts have raised concerns because the full CTA decisions, which used to be posted online, are now confidential.

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Half of all airline passenger disputes resolved by Canada's transport regulator over a recent nine-month period have resulted in wins for passengers.

According to CBC News analysis of newly available data, Canadian Transportation Agency (CTA) officers ordered airlines to compensate or refund passengers in 50 per cent of the 9,740 cases they resolved between Sept. 30, 2023, and June 30.

In most (72.6 per cent) of the rulings favouring the passenger, airlines were ordered to pay compensation for flight disruptions. In the rest, carriers had to reimburse customers for added expenses, or refund flights.

In each case, CTA officers issued the ruling after the airline had denied a passenger's claim, and the passenger and the airline failed to resolve the matter.

"Half of [the passengers] were right, that they should have been paid and the airlines were wrong," said John Gradek, lecturer and co-ordinator of the aviation management program at McGill University in Montreal.

The airlines, he said, "are playing a little fast and loose" with the rules.

A passenger checking the departures board at the airport.

The data is available in a new online tool on the CTA's website. Even so, some industry and legal experts have raised concerns because the full CTA decisions, which used to be posted online, are now confidential. That means most case details, including all the reasons behind a ruling, and how much compensation was awarded, are no longer made public.

"It's a violation of the open justice principle that these legally binding decisions are being made essentially in private," said Paul Daly, chair in administrative law and governance at the University of Ottawa.

"I have grave doubts about the constitutionality of this provision."

Canada's air passenger protection regulations started rolling out in 2019. According to the rules, airlines must cover added expenses for certain flight disruptions, provide cash refunds for flight cancellations, and pay up to $1,000 for delays of three hours or more within the carrier's control.

The CTA settles disputes between airlines and customers. Due to a flood of passenger complaints over the past several years, the agency's backlog has swelled to more than 74,000 grievances.

Less time to respond

Among the 50 per cent of CTA rulings that favoured passengers, 1,553 (32.8%) involved Canada's largest airline, Air Canada, and 1,443 (30 per cent) involved WestJet, the second largest.

Air Canada spokesperson Christophe Hennebelle pointed out that far less than half of CTA decisions involving the airline (39.5 per cent) resulted in an order to pay a passenger.

"Air Canada, in the vast majority of cases, properly compensates its customers," said Hennebelle in an email.

He added that the CTA recently shortened the time allowed for airlines to respond to complaints to 14 days, which sometimes prevents Air Canada from gathering the necessary evidence to support its case.

"Numerical data does not always tell the full story," said Hennebelle.

WestJet declined to comment.

Details kept secret

The CTA's online tool lists selected data on rulings like the flight number, date, whether a delay was within the carrier's control, and if the airline was ordered to pay compensation.

"The point of putting… this specific information out is so that another passenger would be able to say, 'OK, I also was on this flight.… Was compensation ordered?'" said Tom Oommen, CTA director general of regulatory affairs.

"That is the relevant information for passengers."